Evaluation of Myrdal’s model of cumulative causation and spatial interaction

MYRDAL’S MODEL OF CUMULATIVE CAUSATION AND SPATIAL INTERACTION

KAT AND SIMON

MYRDAL’S BELIEFS

Over time, economic forces increase regional inequalities rather than reduce them.

COMPARATIVE ADVANTAGES

Location

Natural Resources

Labor

Improvements in Infrastructure

Skilled Workforce

Increased tax revenues

ACQUIRED ADVANTAGES

ANALYSIS

Good: Does not group development status by country

• Looks at areas geographically and more specifically

Good: Measures development by more than 1 factor of production

• Labor • Capital

ANALYSIS

Bad: Doesn’t consider measures taken by certain governments to alleviate economic disparity between regions

Applicable to Chinese Rural-Urban Migration

• Large development disparity between rural areas and cities like Shanghai/Beijing

• Developed areas in China (LEDC) are sporadic

Inapplicable to Poland – UK Migration

• Poland government has realized problem and is enforcing new rules/policies to prevent a stagnation in development• Higher wages• Maternal Leave